If WiMAX Were Only Available Today - Tip On Alvarion

Friday, September 16, 2005

Getting incrasingly frustrated with my modem connection in the Austrian hinterlands which works at a crappy 40k only I googled around for future internet access possibilities and stumbled upon Alvarion Ltd. which is the self-proclaimed world market leader for so-called WiMAX connections.
In short, before my modem hangs up again for whatever - beep - reasons:
WiMAX is the next big step after WLAN. Whereas WLAN works only for a few 100 feet, WiMAX enables users to connect to the internet within a radius of roughly 30 miles to the nearest transmission unit and does so even across mountains or within buildings at speeds surpassing DSL connections. The Nasdaq-listed company, ticker ALVR, went public at the end of the internet craze at some $50 a share and is currently trading close to its 52-week low at $ 8.80 after it surprisingly posted another quarterly loss. Click here to proceed to all financial details of Alvarion which claims to have established sales in already 130 countries around the world.
As they just landed a contract with Israels national internet provider Bezeq they seem to be more than a daytripper. Reading their product descriptions this sounds like a stock The Prudent Investor can recommend (and will buy himself to put his money where his mouth is) as the company is expected to return to profitability again in the next quarter.
There are even analysts reports available that compare Alvarion to Microsoft or Apple at their early stages. The concept of erecting a single low-cost transmission unit every couple of miles is simple enough to fulfill my investment standards where the first rule says, if a company can't explain what it does within three sentences/minutes, look elsewhere to put your money.
Alavarion has published a release some time ago that they are cooperating with Intel on a WiMAX chip. If all this becomes true it could pave the road to the fulfilment of heavy internet users wettest dreams: Highspeed internet whereever you are. This should send the stock skywards in the medium term.
NOTE: Blogging will resume on September 20.


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